Inflation Producer prices in February only slightly down on the previous year
Annual inflation at producer price level was again negative in February compared to the previous year, albeit only just. Import prices in particular remain clearly in negative territory.
13.03.2025, 09:37
SDA
Specifically, the price level based on producer and import prices (PPI) fell by 0.1% in February 2025 compared to the same month in the previous year, as reported by the Federal Statistical Office (FSO) on Thursday. Import prices were again clearly down at -0.8% on an annualized basis, while producer prices were 0.2% higher than in February 2024.
February was thus the 22nd consecutive month with a negative sign for the overall index. In January, the figure was -0.3%; the last time it was positive was in April 2023, when it was +1.0%. Due to the sharp rise in energy prices following the Russian invasion of Ukraine, the value had risen to +6.9% in early summer 2022.
Clear increase compared to the previous month
Compared to the previous month, the overall PPI rose by 0.3% to 106.7 points in the month under review, with both producer prices and import prices increasing by the same amount. According to the FSO, the increase in the producer price index was mainly due to higher prices for basic pharmaceutical products. Electricity and petroleum products also became more expensive. In contrast, prices for pharmaceutical specialties and chemical products fell.
In terms of import prices, higher prices were recorded for petroleum products in particular compared to January 2025. Prices also rose for green coffee, organic products from the chemical industry, non-ferrous metals and products made from them, as well as vegetables, melons and potatoes. In contrast, plastics in primary forms, pharmaceutical specialties, other chemical products and computers became cheaper.
The PPI is regarded as a leading indicator for the development of consumer prices, as the costs of production are normally passed on to consumer prices. However, the index has significantly higher swings and is more volatile due to the high dependence on raw materials. Annual inflation based on consumer prices (CPI) was +0.3% in February.
